NEWS RELEASE, 17 MARCH, 2015

PRELIMINARY RESULTS ANNOUNCEMENT FOR THE YEAR ENDED 2014

STEADY OPERATING PERFORMANCE IN A WEAKER MARKET

"Although we remain cautious on the macro environment for 2015, we are pleased to announce a final dividend of 9.8 cents per share, which is in line with our stated dividend policy. Our strategy for Antofagasta remains unchanged: we are focussed on engaging with all our stakeholders to find solutions to long term issues reinforcing our licence to operate, and we concentrate on doing what we know best - producing copper, reducing costs and building a platform for long term growth across the cycles."

Financial performance

HIGHLIGHTS

· EBITDA fell 17.8% to $2,221.6 million, as a result of lower revenue and an increase in cash costs offset by lower exploration and evaluation costs.

· EBITDA margin remains strong at 42.0%, though marginally down on last year's margin of 45.3%.

· Net earnings fell 8.7% to $602.0 million, excluding the $142.2 million deferred tax provision resulting from the changes in the Chilean tax law during 2014 (decrease of 30.3% to $459.8 million including this deferred tax provision). The decrease is primarily due to the decrease in EBITDA and a $88.3 million increase in depreciation, principally at Centinela and Michilla.

· Earnings per share for the year were 61.0 cents, excluding the deferred tax provision resulting from the changes in the Chilean tax law (1) (46.6 cents including this provision).

· Operating cash flow generation was $2,507.8 million in the period, $151.4 million lower than in 2013.

· Group balance sheet remains strong with attributable net cash at 31 December of $315.4 million. Group net debt was $1.6 million at 31 December 2014.

· Final dividend of 9.8 cents per share, representing a pay-out ratio for the year of 35%.

Operational performance

· Cash costs before by-product credits at $1.83/lb were 2.2% higher than in 2013 primarily due to one-off signing bonuses paid following the conclusion of labour contract negotiations at all of the Group's mining operations and which will be in effect for up to four years, but which according to applicable accounting policies are expensed when paid. This was partially offset by a weaker peso and lower input costs.

· Los Pelambres - as previously announced, local protests during February and March 2015 disrupted production, resulting in lost production of 8,000 tonnes of copper, and Pelambres will work to mitigate this impact over the rest of the year. In addition, as also previously announced, in March 2015 the Civil Court of Los Vilos, in considering a work plan submitted by Los Pelambres in order to comply with a decision of the Supreme Court, considered the plan to be insufficient, ordering the partial or total destruction of the El Mauro tailings dam wall. Los Pelambres considers the ruling of the Civil Court of Los Vilos to be flawed, has appealed the Court's decision and is considering the exercise of all available legal measures that may be required to overturn this decision and address its potential consequences. The Group is working to fully resolve these issues, but there is some inherent uncertainty as to the potential impact of these matters on
2015.

· Net cash costs at $1.43/lb were 5.1% higher than in 2013 reflecting the higher cash costs before by-product credits, and lower gold production and realised gold prices at Centinela

Growth projects

· Encuentro Oxides capital expenditure estimate reduced to $636 million, a reduction of $156 million when compared with the adjusted pre-feasibility study estimate of $792 million.

· Centinela Second Concentrator pre-feasibility study completed, scoping study estimate of $2.7 billion confirmed with expected production of 140,000 tonnes of copper and 150,000 ounces of gold.

· Centinela Molybdenum Plant feasibility study completed, average production of 2,400 tonnes of molybdenum per year in the first five years is expected following start-up during the second half of 2016.

· Twin Metals Minnesota, consolidation of 100% ownership completed in January 2015.

(1) As announced on 29 October 2014 net earnings include a deferred tax charge arising from changes in the Chilean tax system in 2014. This deferred tax charge as a result of the Chilean tax reform of $220.6 million has had an impact on 2014 net earnings of $142.2 million, and an impact on 2014 earnings per share of 14.4 cents per share. See note 7 to the preliminary results announcement.

(2) Cash refers to the total of cash, cash equivalents and liquid investments, as analysed in Note 22 to the preliminary results announcement. On a gross basis, the Group's net debt at period end was $1.6 million.

(3) Cash cost is a method used by the mining industry to express the cost of production in US dollars per pound of copper and is further explained in Note 28(b) to the preliminary results announcement.